This toy is build with three flat magnet disks with holes in the middle. Magnets are sliped on the plastic rod.

If magnets are placed on the rod in that way, that their polarity repel each other then thay floating one over another. Repelin force is increase with decrease of the distance between them. It is easy to check by pressing of the top magnet with a hand. In balance state distance between magnets is such, that repeling magnetic force (acting up) is the same like gravitational force (acting down). That kind of phenomena is a typical example of the forces acting at distance, the same like between atoms and molecules in microsopic scale.